History of American Business

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Herbert Spencer

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History of American Business

Definition

Herbert Spencer was a 19th-century English philosopher and sociologist known for his contributions to the development of Social Darwinism, which applied the concept of 'survival of the fittest' to human societies and economies. His ideas influenced many aspects of business practices by promoting competition as a natural law of economic growth, suggesting that only the strongest enterprises would thrive in a free market, reflecting the broader implications of Social Darwinism in American business culture.

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5 Must Know Facts For Your Next Test

  1. Herbert Spencer coined the phrase 'survival of the fittest,' which he used to explain how societal progress and evolution are driven by competition among individuals and groups.
  2. His views on Social Darwinism justified social inequality, arguing that the wealth and success of some individuals and businesses were indicative of their superiority over others.
  3. Spencer believed that social reforms aimed at helping the poor or disadvantaged interfered with natural selection and hindered societal progress.
  4. His writings gained significant popularity in the United States during the Gilded Age, influencing American attitudes towards business practices and social policies.
  5. Spencer's ideas contributed to a rationalization for monopolies and large corporations as successful examples of natural selection in the business world.

Review Questions

  • How did Herbert Spencer's philosophy influence American attitudes towards competition in business?
    • Herbert Spencer's philosophy promoted the idea that competition was a natural and beneficial aspect of society, where only the strongest would succeed. This view led many Americans during the Gilded Age to embrace ruthless business practices, believing that competitive markets naturally filtered out weaker companies. As a result, his ideas encouraged an environment where monopolies were often accepted as a sign of strength rather than being seen as detrimental to fair competition.
  • In what ways did Social Darwinism, as proposed by Herbert Spencer, justify social inequality in America?
    • Social Darwinism provided a framework for justifying social inequality by suggesting that economic success was a reflection of individual superiority. Spencer argued that those who achieved wealth were naturally selected for their abilities, while those who struggled economically were seen as less fit. This rationale influenced public opinion against social welfare programs, as helping the disadvantaged was viewed as interfering with natural selection, perpetuating the belief that inequality was both justified and beneficial for societal progress.
  • Evaluate the long-term impact of Herbert Spencer's ideas on contemporary business practices and social policies in America.
    • Herbert Spencer's ideas have left a lasting legacy on contemporary business practices and social policies by embedding notions of competition and meritocracy within American culture. The belief in 'survival of the fittest' continues to influence corporate strategies that prioritize aggressive competition and market dominance. Additionally, debates around welfare and social safety nets reflect Spencerian thought, as discussions often pivot around whether aiding the disadvantaged undermines personal responsibility. Overall, his philosophy shapes ongoing discussions about equity in business and society.

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